Date issued: 26 Jul 2007
BRAKES SLAMMED ON HOUSE PRICES IN JULY
- House price growth stalled in July, bringing annual growth back down into single digits
- A rise in interest rates to 6% is firmly on the horizon, but weak household income growth and mortgage payment shocks highlight the risk of monetary overkill
- The Housing Green Paper is a welcome step on housing supply but, as the recent flooding shows, the challenges ahead are substantial
| Headlines |
July 2007 |
June 2007 |
| Monthly index * Q1 '93 = 100 |
363.5 |
363.2 |
| Monthly change* |
0.1% |
1.1% |
| Annual change |
9.9% |
11.1% |
| Average price |
£184,270 |
£184,070 |
* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
“After surprisingly picking up steam in June, house prices were almost unchanged in July, and their underlying trend growth resumed a downward path.
“House prices managed a seasonally adjusted gain of only 0.1% in July, the slowest pace of growth since April 2006. The marked slowdown brought the annual rate of house price inflation down to 9.9%, following three consecutive months of double-digit growth. A typical UK property cost an average of £184,270 in July, £16,537 more than one year ago. The three-month on three-month rate of growth – often a better indicator of the underlying trend of house price inflation – slowed to 2.0% and resumed the downward path that had been interrupted in June.”
For further information please see this month's full report (PDF - 48KB)
